Excess Returns · Tuesday, August 11, 2026
Dom Rizziolan forecasts that hyperscalers' capital expenditure will accelerate into 2025, potentially reaching $1.5 to $1.6 trillion. This projection comes despite an expected moderate pricing environment for memory, driven by the attractive return on capital for these companies.
“If you look at the hyperscalers' CapEx spend, they're going to grow say 75% in 2026 to roughly $800 billion of spend.”
“I actually think we're going to see an acceleration in CapEx next year. Growing faster than the 75% growth we'll see in '26, which will put us at kind of $1.5, $1.6 trillion of CapEx for the hyperscalers.”
“And what's so amazing about that is I actually think that will happen in a relatively moderate pricing environment for memory.”